diff --git a/mercurial/localrepo.py b/mercurial/localrepo.py
--- a/mercurial/localrepo.py
+++ b/mercurial/localrepo.py
@@ -495,6 +495,11 @@ class localrepository(object):
                         ' dummy changelog to prevent using the old repo layout'
                     )
             else:
+                try:
+                    self.vfs.stat()
+                except OSError as inst:
+                    if inst.errno != errno.ENOENT:
+                        raise
                 raise error.RepoError(_("repository %s not found") % path)
         elif create:
             raise error.RepoError(_("repository %s already exists") % path)
diff --git a/tests/test-clone.t b/tests/test-clone.t
--- a/tests/test-clone.t
+++ b/tests/test-clone.t
@@ -642,7 +642,7 @@ Inaccessible source
   $ mkdir a
   $ chmod 000 a
   $ hg clone a b
-  abort: repository a not found!
+  abort: Permission denied: '$TESTTMP/fail/a/.hg'
   [255]
 
 Inaccessible destination
@@ -665,7 +665,7 @@ Source of wrong type
 
   $ mkfifo a
   $ hg clone a b
-  abort: repository a not found!
+  abort: $ENOTDIR$: '$TESTTMP/fail/a/.hg'
   [255]
   $ rm a